December 29, 2021 – CPP Premiums on the Rise

by | Dec 29, 2021 | Industry Updates

Five years ago, the Government of Canada and provinces developed a multi-year plan to increase retirement savings for Canadians by raising CPP premiums. The increases began in 2019 but took a larger than anticipated jump for 2022. The formula used to determine the increase is based on Canadian’s average weekly earnings compared to the previous 12-month period ending in June. Due to the pandemic, fewer people were working lower-paying jobs, and the formula output a higher increase than anticipated.

 

CPP contribution rates, maximums, and exemptions

YearMaximum annual pensionable earningsBasic exemption amountMaximum contributory earningsEmployee and employer contribution rate (%)Maximum annual employee and employer contribution Maximum annual self-employed contribution
202264,9003,50061,4005.73,499.806,999.60
202161,6003,50058,1005.453,166.456,332.90
202058,7003,50055,2005.252,898.005,796.00
201957,4003,50053,9005.12,748.905,497.80
2018 55,9003,50052,4004.952,593.805,187.60
201755,3003,50051,8004.952,564.105,128.20
201654,9003,50051,4004.952,544.305,088.60
201553,6003,50050,1004.952,479.954,959.90
201452,5003,50049,0004.952,425.504,8510
201351,1003,50047,6004.952,356.204,712.40
201250,1003,50046,6004.952,306.704,613.40
201148,3003,50044,8004.952,217.604,435.20
201047,2003,50043,7004.952,163.154,326.30
Source

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